# Stability Pool

The **Stability Pool (SP)** is the primary source of funds for liquidations on Orby Network. When liquidations occur, SP depositors absorb the debt and, in return, receive a share of the liquidated collateral, distributed based on their deposit size. *For steps on using the Stability Pool, please click* [*here*](https://doc.orby.network/user-guide/how-to-use-the-stability-pool)*.*

**Key Features:**

* **No minimum lockup** – deposit and withdraw anytime.
* **Withdrawals may be paused** if there are undercollateralized positions.

**Rewards for SP Depositors:**

1. **Liquidation Proceeds** – Paid in the underlying [collateral](https://doc.orby.network/overview/supported-collateral) (e.g., $CDCETH, $CDCBTC, $LCRO).
2. **Protocol Rewards** – Paid in [$esORB](https://doc.orby.network/overview/tokenomics/usdesorb).

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeuF0bIeH__QdNYheMOU9OPSpnAhyOrpJIRuSMsddp63unuU0jEUH_js5Yl7mrhxKYWfhchYB_CRY129X7WJQYRbSmIk4nimFcvMWo8ankkGxEX7h9s5JgQDcdQPxkjFRfYXJJv?key=-lSTrxiNSL2RxWy0lj6j4xo9" alt=""><figcaption></figcaption></figure>

## Commonly asked questions

<details>

<summary>Why should I deposit $USC in the Stability Pool?</summary>

* You will earn real yield (liquidation revenue) paid out in $cdcETH, $cdcBTC, and $LCRO
* You will earn token incentives paid out in $esORB
  * $esORB can be converted to $ORB or deposited in the Vault for even more rewards

</details>

<details>

<summary>I deposited [USC 100] into the Stability Pool. Why do I now only have [USC 80]?</summary>

Any $USC deposited in the Stability Pool will be used to pay a liquidated user's debt. Hence, you will expect to see your $USC in the pool decline. However, you will instead receive your collateral at a discounted rate in return.&#x20;

For example, a user with a collateral ratio of 135% (USC 100 worth of borrowing) gets liquidated. $100 will be taken from the Stability Pool (SP) to pay off his debt, and $135 of his $cdcETH collateral will be sent to the Pool and distributed between liquidity providers and the liquidator.&#x20;

This essentially means that SP providers (excluding the liquidator) paid $100 for $134.325 worth of $cdcETH.&#x20;

</details>

<details>

<summary>Can I withdraw my $USC at any time?</summary>

Yes - unless there are undercollateralized positions that have yet to be liquidated. In such a scenario, withdrawals will be halted until all underwater positions are liquidated.

</details>